Starbucks Reports Q3 Fiscal 2026 Results with $9.32 Billion Revenue and Increased Net Earnings

Starbucks Corporation reported its financial results for the third quarter of fiscal 2026, revealing a total net revenue of $9.32 billion, a decrease of 1.4% compared to $9.46 billion in the same quarter of the previous year. The decline was primarily attributed to the conversion of Starbucks retail operations in China to a licensed joint venture model, which resulted in a revenue drop of approximately $776 million. However, the company saw a 7.9% increase in global comparable store sales, driven by a 4.2% rise in transactions and a 3.6% increase in average ticket size, particularly in the U.S. market.

In terms of profitability, Starbucks reported net earnings of $1.05 billion for the quarter, up from $558.3 million a year earlier, translating to earnings per share of $0.91, compared to $0.49 in the prior year. The increase in net earnings was bolstered by a significant pre-tax gain of $536.3 million from the divestiture of its retail operations in China. Operating income also rose to $980.4 million, reflecting an operating margin of 10.5%, an increase of 60 basis points from the previous year, driven by sales leverage and lower inflation.

Starbucks has been actively restructuring its operations as part of its "Back to Starbucks" strategy, which aims to enhance customer experience and operational efficiency. The company closed 20 stores in the third quarter and a total of 247 stores in the first three quarters of fiscal 2026. Additionally, Starbucks relocated certain support functions to Nashville, Tennessee, to better position itself for growth in the Southeast region. The restructuring efforts have resulted in increased costs, with restructuring and impairment expenses rising to $302.6 million for the quarter.

The company also reported a total of 41,304 stores globally as of June 28, 2026, marking a 1% increase from the previous year. The geographic breakdown of revenues showed that the U.S. contributed $7.38 billion, while international revenues fell to $1.32 billion, largely due to the aforementioned changes in China. Starbucks continues to focus on expanding its licensed store model internationally, which is expected to drive future growth.

Looking ahead, Starbucks anticipates easing macroeconomic pressures, including lower product and distribution costs. The company plans to continue refining its strategic initiatives to enhance customer engagement and operational efficiency. Starbucks remains committed to disciplined capital allocation and expects its international business to contribute significantly to growth in the coming years, particularly through its licensed business model.